Investment Rating - The report maintains a "Buy" rating for the company [1][9]. Core Insights - The performance of China Everbright Water is impacted by a decline in construction business, with a dividend payout ratio increasing to 35% [2][9]. - The company reported a revenue of HKD 5.355 billion for 2025, a year-on-year decrease of 22%, and a net profit of HKD 842 million, down 17% year-on-year [9]. - The gross profit margin improved by 5.83 percentage points to 44.03%, and the net profit margin increased by 0.75 percentage points to 17.20% [9]. - The company is expected to focus on overseas market expansion or domestic mergers and acquisitions as the domestic waste incineration industry matures [9]. Financial Summary - Total revenue projections for the company are as follows: - 2023A: HKD 32,090 million - 2024A: HKD 30,258 million (down 6%) - 2025E: HKD 27,981 million (down 8%) - 2026E: HKD 28,110 million (flat) - 2027E: HKD 28,339 million (up 1%) [4]. - Net profit projections are: - 2023A: HKD 4,429 million - 2024A: HKD 3,377 million (down 24%) - 2025E: HKD 3,587 million (up 6%) - 2026E: HKD 3,792 million (up 6%) - 2027E: HKD 4,014 million (up 6%) [4]. - The company’s PE ratio is projected to be 3.5 in 2023, increasing to 8.6 by 2025 [4]. Market Data - The current stock price is HKD 5.07, with a market capitalization of HKD 31,145 million [1][6]. - The stock has traded within a range of HKD 3.25 to HKD 5.21 over the past 52 weeks [6].

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's performance in 2025 is impacted by a decline in construction business, with a dividend payout ratio increasing to 35% [2][9] - The company reported a revenue of HKD 5.355 billion in 2025, a year-on-year decrease of 22%, and a net profit of HKD 842 million, down 17% year-on-year [9] - The gross profit margin improved by 5.83 percentage points to 44.03%, and the net profit margin increased by 0.75 percentage points to 17.20% [9] - The company is expected to maintain a steady dividend growth supported by improved free cash flow due to accelerated national subsidy recovery and reduced capital expenditures [9] Financial Summary - Total revenue projections for the company are as follows: - 2023A: HKD 32,090 million - 2024A: HKD 30,258 million (down 6%) - 2025E: HKD 27,981 million (down 8%) - 2026E: HKD 28,110 million (up 0%) - 2027E: HKD 28,339 million (up 1%) [4] - Net profit projections are as follows: - 2023A: HKD 4,429 million - 2024A: HKD 3,377 million (down 24%) - 2025E: HKD 3,587 million (up 6%) - 2026E: HKD 3,792 million (up 6%) - 2027E: HKD 4,014 million (up 6%) [4] - The company’s PE ratio is projected to be 3.5 in 2023, increasing to 8.6 in 2025 [4] Market Data - The current stock price is HKD 5.07, with a market capitalization of HKD 31,145 million [1][6] - The stock has traded within a range of HKD 3.25 to HKD 5.21 over the past 52 weeks [6]